Last year i did some work for a babysitting service, it was supposedly "under the table" etc at least thats what I was told, I never filled out any tax forms or anything. I made probably around $6k or so from them. Basically we babysat and they set the rate and we gave them 15% of whatever we made as a referal fee. Well today (February 1st) I received an email asking me to fill out a w-9 so they can issue a 1099. However I wasn't expecting this, and I have already filed my return, received a refund and spent it. Is it even legal for them to ask me for a w-9 now? what should my next steps be?
If it matters at all in answering my question, I had $13k listed on my return from w-2s and other income. I am in maryland.
Can an Employer Demand a W-9 For the Prior Tax Year
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02-01-2015, 06:02 PMChristina HaasCan an Employer Demand a W-9 For the Prior Tax Year
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02-01-2015, 06:10 PMMr. KnowitallRe: Can an Employer Demand a W-9 For the Prior Tax Year
If you reported the $6,000 on your taxes, as you are legally required to do, there isn't an issue. You can make it more difficult for them to report your earnings to the IRS by refusing to cooperate with their request, but you should anticipate that if you failed to report the income and they file a 1099, even with their only having partial information, it's ultimately going to catch up with you.
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02-01-2015, 06:22 PMChristina HaasRe: Can an Employer Demand a W-9 For the Prior Tax Yearwell what should I do now? fill out the w-9 and wait for them to send me the 1099 and amend my 2014 taxes? will the irs then send me a bill and work out payments for whatever I owe? I don't want to just ignore this and let it catch up to me later and become a bigger issue. I want to do the right thing.Quote:
Quoting Mr. Knowitall
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02-01-2015, 06:52 PMTaxing MattersRe: Can an Employer Demand a W-9 For the Prior Tax YearThe right thing to do is amend the return to include the income you left off the return. You can request an installment agreement on Form 9465 if you cannot pay whatever extra tax is due. You are not obligated to provide the W-9, but if you amend the return there will be no downside to it. They'll probably file the Form 1099 whether you provide the information or not, using whatever info they have for you.Quote:
Quoting Christina Haas
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02-01-2015, 06:53 PMChristina HaasRe: Can an Employer Demand a W-9 For the Prior Tax Year
Well i dont have record of the exact dollar amount made, so my best bet is get the 1099 in my hands I guess.
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02-01-2015, 07:21 PMJimmy FRe: Can an Employer Demand a W-9 For the Prior Tax Year
It's funny they're asking for the info on the back end. Stupid question for curiosity sake: if you didn't fill out a W-9 initially, what information do they have of yours? Name? Address? SS#? DOB?
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02-01-2015, 07:58 PMChristina HaasRe: Can an Employer Demand a W-9 For the Prior Tax YearThey have all that info because I submitted a background check to them, it is a babysitting service. Basically when i started taking jobs with them families paid us in cash for our hours, and then wed pay the babysitting service 15% of what we made, then at the end of september they transitioned to taking credit cards over the internet as payment for the babysitter and then transferring our portion to our bank accounts, and my guess is somewhere a long the lines it has caught up to them and thats why they are requesting the info now?Quote:
Quoting Jimmy F
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02-01-2015, 08:52 PMJimmy FRe: Can an Employer Demand a W-9 For the Prior Tax Year
Yeah, as stated above, you had a duty initially to include the 6k on your original taxes, 1099 or not. Regardless, the position you're in now you'd be better off calling the company and asking what your total compensation was rather than waiting for a 1099 so that you can amend your taxes sooner rather than later. This is because you still might have the chance to pay what you owe ( by saving, borrowing, whatever) before April 15th, and thus avoid any penalties and interest (assuming you owe; by your numbers it doesn't look like it would be much difference)
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02-01-2015, 08:57 PMChristina HaasRe: Can an Employer Demand a W-9 For the Prior Tax YearI got $768 back in federal, but used it to catch up on bills already, as soon as i amend, will the IRS send me a bill and I can work out a payment plan?Quote:
Quoting Jimmy F
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02-01-2015, 10:59 PMJimmy FRe: Can an Employer Demand a W-9 For the Prior Tax Year
When you amend you're going to calculate the amount that you should have received (assuming your still would have received a refund). You'll have to pay the difference between that and what you actually received back. They will not send you a notice just b/c you amend; it's self-reporting. They wont send you a notice until they catch the deficiency way down the line. If you pay it back by April 15th you'll avoid penalties and interest altogether. The IRS will also give you a 120-day extension to pay without having to go on a payment plan; that would give you until mid-August. I would try and pay it by at least then if you could; this is because the payment plans actually cost money to get on (at least $43), so it's just added costs.
Call the IRS at 800-829-1040 once you've amended your return and figure you can't pay by April 15. Then ask for an extension to pay. If you can't pay by the extension, then look to the payment plan discussed. Good luck.
http://www.irs.gov/uac/Three-Ways-to...ral-Income-Tax